Strategy: Flat
Prices rebounded from resistance at 1.5911 – the 38.2% Fibonacci retracement – completing a Bullish Engulfing candlestick pattern and re-taking the 1.60 figure. The bulls are now challenging falling trend line resistance set from mid-September (1.6150), with a break above that exposing double top resistance at 1.6303. A reversal below 1.60 targets 1.5911 anew. Risk/reward considerations argue against entering a trade with prices right at resistance and we will stand aside for now.
Daily Chart - Created Using FXCM Marketscope 2.0
--- Written by Ilya Spivak, Currency Strategist for Dailyfx.com
To contact Ilya, e-mail ispivak@dailyfx.com. Follow Ilya on Twitter at @IlyaSpivak
To be added to Ilya's e-mail distribution list, please CLICK HERE
New to FX? Watch this Video. For live market updates, visit the Real Time News Feed
